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  By: Landgraf H.B. No. 4885
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the Texas Emissions Reduction Plan.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 386.051(b), Health and Safety Code, is
  amended to read as follows:
         (b)  Under the plan, the commission and the comptroller shall
  provide grants or other funding for:
               (1)  the diesel emissions reduction incentive program
  established under Subchapter C, including for infrastructure
  projects established under that subchapter;
               (2)  the motor vehicle purchase or lease incentive
  program established under Subchapter D;
               (3)  the air quality research support program
  established under Chapter 387;
               (4)  the clean school bus program established under
  Chapter 390;
               (5)  the new technology implementation grant program
  established under Chapter 391;
               (6)  the regional air monitoring program established
  under Section 386.252(a);
               (7)  a health effects study as provided by Section
  386.252(a);
               (8)  air quality planning activities as provided by
  Section 386.252(d);
               (9)  a contract with the Energy Systems Laboratory at
  the Texas A&M Engineering Experiment Station for computation of
  creditable statewide emissions reductions as provided by Section
  386.252(a);
               (10)  the Texas clean fleet program established under
  Chapter 392;
               (11)  the Texas alternative fueling facilities program
  established under Chapter 393;
               (12)  the Texas natural gas vehicle grant program
  established under Chapter 394;
               (13)  other programs the commission may develop that
  lead to reduced emissions of nitrogen oxides, particulate matter,
  or volatile organic compounds in a nonattainment area or affected
  county;
               (14)  other programs the commission may develop that
  support congestion mitigation to reduce mobile source ozone
  precursor emissions;
               (15)  the seaport and rail yard areas emissions
  reduction program established under Subchapter D-1, including the
  grant program established under Section 386.184;
               (16)  conducting research and other activities
  associated with making any necessary demonstrations to the United
  States Environmental Protection Agency to account for the impact of
  foreign emissions or an exceptional event;
               (17)  studies of or pilot programs for incentives for
  port authorities located in nonattainment areas or affected
  counties as provided by Section 386.252(a);
               (18)  the governmental alternative fuel fleet grant
  program established under Chapter 395; and
               (19)  remittance of funds to the state highway fund for
  use by the Texas Department of Transportation for congestion
  mitigation and air quality improvement projects in nonattainment
  areas and affected counties.
         SECTION 2.  Section 386.154, Health and Safety Code, is
  amended by amending Subsection (d) and adding Subsections (f) and
  (g) to read as follows:
         (d)  A new light-duty motor vehicle powered by an electric
  drive is eligible for a $2,500 incentive if the total
  consideration, as defined by Section 152.002, Tax Code, of the
  vehicle is less than $55,000 and the vehicle:
               (1)  has four wheels;
               (2)  was manufactured for use primarily on public
  streets, roads, and highways;
               (3)  has not been modified from the original
  manufacturer's specifications;
               (4)  has a maximum speed capability of at least 55 miles
  per hour;
               (5)  is propelled to a significant extent by an
  electric motor that draws electricity from a hydrogen fuel cell or
  from a battery that:
                     (A)  has a capacity of not less than four kilowatt
  hours; and
                     (B)  is capable of being recharged from an
  external source of electricity; [and]
               (6)  is not designed, used, or maintained primarily to
  transport property; and
               (7)  was sold or leased [acquired] on or after
  September 1, 2013, or a later date as established by the commission,
  by the seller or lessor [person] applying for the incentive under
  this subsection and for use or lease by the purchaser or lessee of
  the vehicle [that person] and not for resale.
         (f)  A new light-duty motor vehicle powered by an electric
  drive is eligible for a $4,000 incentive if the vehicle:
               (1)  has four wheels;
               (2)  was manufactured for use primarily on public
  streets, roads, and highways;
               (3)  has not been modified from the original
  manufacturer's specifications;
               (4)  has a maximum speed capability of at least 55 miles
  per hour;
               (5)  is propelled solely by an electric motor that
  draws electricity from a battery that:
                     (A)  has a capacity of not less than four kilowatt
  hours; and
                     (B)  is capable of being recharged from an
  external source of electricity;
               (6)  is designed, used, or maintained primarily to
  transport property; and
               (7)  was sold or leased on or after September 1, 2024,
  or a later date as established by the commission, by the seller or
  lessor applying for the incentive under this subsection and for use
  or lease by the purchaser or lessee of the vehicle and not for
  resale.
         (g)  Notwithstanding Subsections (c) and (e), and subject to
  Section 386.252(a)(11), at the beginning of the second state fiscal
  year of the biennium, the commission shall adjust the initial
  vehicle limitations provided under Subsection (c) and (e) based on
  demand for incentives under this section during the preceding state
  fiscal year.
         SECTION 3.  Subchapter D-1, Chapter 386, Health and Safety
  Code, is amended by adding Section 386.184 to read as follows:
         Sec. 386.184.  GRANT PROGRAM FOR ALTERNATIVELY FUELED
  DRAYAGE TRUCK OR CARGO HANDLING EQUIPMENT INFRASTRUCTURE PROJECTS.
  (a) The commission shall establish and administer a grant program
  to encourage the purchase, construction, and installation of
  infrastructure needed in nonattainment areas and affected counties
  of this state to support the use of drayage trucks that are or cargo
  handling equipment that is powered by an alternative fuel, as
  defined by Section 393.001.
         (b)  A grant awarded under the program established by this
  section may not exceed more than 80 percent of the estimated
  purchase, construction, and installation costs of the
  infrastructure project, provided that the commission may establish
  a reasonable maximum amount of a grant awarded per infrastructure
  project as needed.
         SECTION 4.  Section 386.252(a), Health and Safety Code, is
  amended to read as follows:
         (a)  Money in the fund and account may be used only to
  implement and administer programs established under the plan.
  Subject to the reallocation of funds by the commission under
  Subsection (h) and after remittance to the state highway fund under
  Subsection (a-1), money from the fund and account to be used for the
  programs under Section 386.051(b) shall initially be allocated as
  follows:
               (1)  four percent may be used for the clean school bus
  program under Chapter 390;
               (2)  eight [three] percent may be used for the new
  technology implementation grant program under Chapter 391, from
  which at least $1 million will be set aside for electricity storage
  projects related to renewable energy and not more than $8 million
  may be used for hydrogen infrastructure and vehicles;
               (3)  7.5 [five] percent may be used for the Texas clean
  fleet program under Chapter 392;
               (4)  not more than $3 million may be used by the
  commission to fund a regional air monitoring program in commission
  Regions 3 and 4 to be implemented under the commission's oversight,
  including direction regarding the type, number, location, and
  operation of, and data validation practices for, monitors funded by
  the program through a regional nonprofit entity located in North
  Texas having representation from counties, municipalities, higher
  education institutions, and private sector interests across the
  area;
               (5)  five [10] percent may be used for the Texas natural
  gas vehicle grant program under Chapter 394;
               (6)  eight percent [not more than $6 million] may be
  used for the Texas alternative fueling facilities program under
  Chapter 393[, of which a specified amount may be used for fueling
  stations to provide natural gas fuel, except that money may not be
  allocated for the Texas alternative fueling facilities program for
  the state fiscal year ending August 31, 2019];
               (7)  not more than $750,000 may be used each year to
  support research related to air quality as provided by Chapter 387;
               (8)  not more than $200,000 may be used for a health
  effects study;
               (9)  at least $6 million but not more than $16 million
  may be used by the commission for administrative costs, including
  all direct and indirect costs for administering the plan, costs for
  conducting outreach and education activities, and costs
  attributable to the review or approval of applications for
  marketable emissions reduction credits;
               (10)  six percent may be used by the commission for the
  seaport and rail yard areas emissions reduction program established
  under Subchapter D-1, including the grant program established under
  Section 386.184;
               (11)  2.5 [five] percent may be used for the light-duty
  motor vehicle purchase or lease incentive program established under
  Subchapter D;
               (12)  not more than $216,000 may be used by the
  commission to contract with the Energy Systems Laboratory at the
  Texas A&M Engineering Experiment Station annually for the
  development and annual computation of creditable statewide
  emissions reductions obtained through wind and other renewable
  energy resources for the state implementation plan;
               (13)  not more than $500,000 may be used for studies of
  or pilot programs for incentives for port authorities located in
  nonattainment areas or affected counties to encourage cargo
  movement that reduces emissions of nitrogen oxides and particulate
  matter; and
               (14)  the balance is to be used by the commission for
  the diesel emissions reduction incentive program under Subchapter C
  as determined by the commission.
         SECTION 5.  Sec. 391.001, Health and Safety Code is amended
  to read as follows:  DEFINITIONS. In this chapter:
               (1)  "Best available control technology" has the
  meaning assigned by Section 169 of the federal Clean Air Act (42
  U.S.C. Section 7479(3)).
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
               (3)  "Facility" has the meaning assigned by Section
  382.003.
               (4)  "Incremental cost" has the meaning assigned by
  Section 386.001.
               (5)  "New technology" means emissions control
  technology that results in emissions reductions that exceed state
  or federal requirements in effect at the time of submission of a new
  technology implementation grant application.
               (6)  "Stationary source" has the meaning assigned by
  Section 302 of the federal Clean Air Act (42 U.S.C. Section
  7602(z)).
               (7)  "Hydrogen vehicle" means a motor vehicle that uses
  hydrogen to operate the vehicle, including through the use of
  hydrogen fuel cells or an internal combustion engine that runs on
  hydrogen.
         SECTION 6.  Sec. 391.002(b), Health and Safety Code, is
  amended to read as follows:
         (b)  Projects that may be considered for a grant under the
  program include:
               (1)  advanced clean energy projects, as defined by
  Section 382.003;
               (2)  new technology projects that reduce emissions of
  regulated pollutants from stationary sources;
               (3)  new technology projects that reduce emissions from
  upstream and midstream oil and gas production, completions,
  gathering, storage, processing, and transmission activities
  through:
                     (A)  the replacement, repower, or retrofit of
  stationary compressor engines;
                     (B)  the installation of systems to reduce or
  eliminate the loss of gas, flaring of gas, or burning of gas using
  other combustion control devices; or
                     (C)  the installation of systems that reduce
  flaring emissions and other site emissions; [and]
               (4)  electricity storage projects related to renewable
  energy, including projects to store electricity produced from wind
  and solar generation that provide efficient means of making the
  stored energy available during periods of peak energy use; and[.]
               (5)  to encourage the adoption of hydrogen
  infrastructure and vehicles, including:
                     (A)  implementation of hydrogen infrastructure
  projects;
                     (B)  purchase or lease of on-road or non-road
  hydrogen vehicles;
                     (C)  replacement of on-road or non-road vehicles
  with newer on-road or non-road hydrogen vehicles;
                     (D)  use of hydrogen fuel; and
                     (E)  purchase or lease of hydrogen engines and
  heavy equipment.
         SECTION 7.  Section 393.006(a), Health and Safety Code, is
  amended to read as follows:
         (a)  Grants awarded under this chapter for a facility to
  provide alternative fuels other than natural gas may not exceed
  [the lesser of:
               [(1)]  50 percent of the sum of the actual eligible
  costs incurred by the grant recipient within deadlines established
  by the commission[; or
               [(2)  $600,000].
         SECTION 8.  The changes in law made by this Act apply only to
  a Texas emissions reduction plan grant awarded on or after the
  effective date of this Act. A grant awarded before the effective
  date of this Act is governed by the law in effect on the date the
  award was made, and the former law is continued in effect for that
  purpose.
         SECTION 9.  This Act takes effect September 1, 2023.